PM tells business leaders:

‘Authoritarian rule took country nowhere’

by Lalin Fernandopulle

The country got nowhere despite putting an end to the war, due to the authoritarian rule of the Rajapaksa regime that looked into the welfare of only one family, Prime Minister Ranil Wickremesinghe told the 16th Economic Summit organized by the Ceylon Chamber of Commerce in Colombo on Wednesday.

He said only Japan and South Korea emerged from a devastating war to achieve great economic heights and become giants in the region. India has come a long way and is striving to boost further economic growth.

“We have suffered enough from the crippling war and a corrupt regime. We need to march forward with peace and unity among all races in the country. Sri Lanka has enormous potential to forge ahead and be a major market in the region,” Wickremesinghe said.

The theme of this year’s summit ‘Towards Exports of US$ 50 billion’ augurs well with the United National Party’s plan to build a new country in 60 months and the 100-day program that set the path for it.

“We got our plans ready when elections were called and our manifesto is not a heap of pledges to hoodwink voters,” the Prime Minister said.

He said Sri Lanka needs a highly competitive economy for which there should be competitive enterprises. We will create a vibrant workforce through education. A student after 13 years of schooling could pursue market-oriented degrees. The five-point plan focuses on economic development, infrastructure growth, ensuring a corruption-free country, upholding freedom and developing education.

The UNFGG (United National Front for Good Governance) will create one million job opportunities which will boost the income level of the people and uplift their standard of living.

“Our aim is to bridge the economic development gap between Sri Lanka and South East Asia and reach a level of development that will enable us to create decent jobs. Sri Lanka needs a market larger than the domestic market to achieve this target. We need to be a highly competitive social market economy with a focus on sustainable development,” the Prime Minister said.

Global think tanks and economists have shown the need for State-controlled market economies following the world economic crisis which underscored the need to move away from an open market economy to State-regulated market economies.

This cannot be achieved overnight. A lot of hard work is necessary. “We need to be outward looking. We cannot depend on import substitution and go for a US$ 50 billion export target. Trade with Europe and the USA is vital to boost exports. It is a misconception to believe that we could do without the GSP Plus scheme. The trade benefit scheme will be revived this year,” he said.

Finance Minister Ravi Karunanayake taking part in a panel discussion said we need large markets such as India and place our exports in a competitive position.

The Comprehensive Economic Partnership Agreement (CEPA) should be looked from a Sri Lankan point of view. “We must ensure our products penetrate markets such as China. To achieve our export target there should be major reforms. The business community must interact with politicians. We should promote investments across all sectors seriously,” he said.

Legislative measures will be taken to enhance collection of revenue and implement the Special Provision Law for development. Economic development zones will be created for tourism, Information Technology and agricultural development across the country,” the Prime Minister said.

He said steps will be taken to develop a mega city in the Western Province which will include 500,000 housing units and beautification of the city will continue. Measures will be taken to create a highly-skilled work force to accelerate economic growth.

Sri Lanka’s Ease of Doing Business ranking is low. Any investment proposal should get a reply within 40 days.

Currently there are too many departments to which an investor has to go.“Our aim is be around the 50th in the Ease of Doing Business ranking within the next two years,” Wickremesinghe said. Karunanayake said though there was a drop in exports, Sri Lanka has fantastic companies that could compete in the global market. The cost of imports is too high. Bank interest rates were also high. Small and medium scale enterprises should be protected and helped to compete in the region and banks must take bigger risks.

The Prime Minister said the Financial Crimes Investigation Division (FCID) will be made a vibrant unit as in the UK comprising legal experts, the police and businessmen to control corruption and bring the culprits to book.

All corruption files will be taken up in September. There were many stay orders. A final decision will be taken next month. With regard to the Treasury Bond scam, the Prime Minister said the allegations should be probed internally or in Parliament.

“The Central Bank Governor and I have presented our views to the COPE. The opposition questioned the credibility of the report of the three-member investigation team as they were loyal to the UNP.

Can I appoint a SLFP team especially after January 8?,” he queried.

Chairman, Ceylon Chamber of Commerce, Samanatha Ranatunga said Sri Lanka has fallen way behind in exports compared to some of its neighbouring countries. export revenue was US$ 11.8 billion last year.